Phases 2 and 3 of the PM-3 Commercial Arrangement Area (CAA) project are being conducted offshore in the Malaysia/Vietnam overlapping zone. Phase 1 commenced oil production in July 1997, and Phases 2 and 3 reached peak production in early 2004. This extensive project covers a 1,350 km² area, extracting oil and gas from six offshore fields: West Bunga Kekwa, East Bunga Kekwa-Cai Nuoc, East Bunga Raya, West Bunga Raya, NW Bunga Raya, and Bunga Seroja.

Key Players

1. Operator: Talisman Malaysia, with a 41.44% interest

2. Petronas Carigali: 46.06% interest

3. PetroVietnam Investment & Development Company: 12.5% interest

For the unitized East Bunga Kekwa – Cai Nuoc field extending into Vietnam Block 46-Cai Nuoc:

1. Operator: Talisman Vietnam, with a 33.15% interest

2. Petronas Carigali (Vietnam): 36.85% interest

3. PetroVietnam Investment & Development Company: 30% interest

Drilling and Development

Development drilling began in October 2002, with a 60-well program continuing through 2004. The project includes the installation of:

1. Four new wellhead platforms

2. A central processing platform

3. A compression annex platform

4. A floating storage offloading vessel (FSO)

5. Inter-field pipelines

These facilities support a production capacity of 60,000 barrels per day of oil and 270 million cubic feet per day of gas.

FSO Conversion

The 98,567 dwt crude tanker was converted into an FSO by MSE, increasing its hull length from 231.6 meters to 246.5 meters and expanding its cargo tank capacity to 853,853 barrels. The vessel set sail on August 23, 2003.

Central Processing Platform

The Bunga Raya A 9,000-ton central processing platform was installed next to the existing Bunga Raya B platform. The topsides were installed using a novel floatover operation with the COSCO Class 2 dynamically positioned (DP) Heavy Lift Vessel (HLV) Tai An Kou, marking the first DP-controlled floatover operation.

Contracts and Installation

1. EPCI Contract: Awarded to Hyundai Heavy Industries (HHI) by Talisman Malaysia

2. Engineering and Supervision: Provided by Noble Denton

3. Heavy Lift Vessels: Tai An Kou and Kang Shen Kou, provided by NMA-COSCO

Export and Gas Sales

1. Gas sales are contracted to Petronas and PetroVietnam.

2. Petronas Carigali: Constructed a 24-inch, 170 km gas pipeline to the Resak Platform

3. PetroVietnam: Building an 18-inch, 330 km gas pipeline to Ca Mau, southern Vietnam, with first gas deliveries expected in 2005-2006

Future Developments

The Bunga Orkid/Bunga Pakma gas field complex will support long-term gas sales commitments, with development targeted for 2007. Successful exploration and appraisal wells were drilled in this area in 2003.